Swiss engineering and technology company ABB has announced plans to invest $280 million in a new robotics factory in Sweden. The move is driven by increased customer demand and aims to facilitate continuous production and eliminate supply chain log jams during the company’s transition from Asia.
The expansion into Europe was announced in a blog post by ABB on September 13. The company plans to establish a state-of-the-art ABB Robotics European Campus in Västerås, Sweden. The campus will serve as a hub for robotics services in Europe, offering AI-powered collaborative and industrial robots, as well as digital solutions with flexible automation to support local production strategies.
The goal is to complete all production processes for the new campus by late 2026. ABB Chief Executive Bjorn Rosengren believes this move will position the company to better serve its customers in Europe, noting that around 95% of the robots ABB sells in the region are already manufactured there. The investment in Sweden will strengthen ABB’s capabilities and commitment to its “local for local” strategy.
The new facility in Sweden is expected to increase ABB’s production capacity by over 50%, enhancing its global leadership position in robotics and automation. Additionally, it will boost the company’s supply capacity within the European market, with plans to scale by 7% before 2027. This investment brings ABB’s total investment in its three robotics facilities since 2018 to $530 million.
While tensions between China and the United States have led some manufacturing firms to consider relocating, ABB remains committed to its presence in China. However, CEO Bjorn Rosengren acknowledges that some American-based companies may choose to shift their investment plans to other Asian countries due to the current climate. He also believes that while the Chinese economy’s recovery from the COVID-19 pandemic may be weaker than expected, there is potential for improvement in the future.
Overall, ABB’s investment in Sweden’s new robotics factory demonstrates the company’s dedication to meeting customer demand and expanding its capabilities in the European market. The new facility will solidify ABB’s position as a leader in robotics and automation while also supporting local production strategies.
Definitions:
1. ABB – A Swiss engineering and technology company.
2. Robotics – The field of technology that deals with the design, construction, and operation of robots.
3. Automation – The use of technology to perform tasks without human intervention.
4. Supply Chain – The sequence of processes involved in moving a product from the supplier to the customer.
5. COVID-19 – A respiratory illness caused by the novel coronavirus SARS-CoV-2.
6. AI (Artificial Intelligence) – The simulation of human intelligence in machines that are programmed to think and learn like humans.
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